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20 Aug 2015
EUR/PLN seen at 4.15 in 12-month – Danske Bank
FXStreet (Edinburgh) - Thomas Harr, Global Head of FICC Research at Danske Bank, expects the Polish zloty to gain further strength in the longer-run.
Key Quotes
“We believe that the increased political uncertainty in Poland will cause more zloty volatility in the near term and see a risk that EUR/PLN could inch up further in the next 1-3 months”.
“We target the cross at 4.20 in 1M and 4.25 in 3M. On a 6-12M horizon, we expect the zloty to remain supported by both a moderately more positive outlook for growth and the ECB’s QE programme as well as the end of the central bank rate cuts”.
“Hence, we expect EUR/PLN to fall back towards 4.15 in 6-12M”.
Key Quotes
“We believe that the increased political uncertainty in Poland will cause more zloty volatility in the near term and see a risk that EUR/PLN could inch up further in the next 1-3 months”.
“We target the cross at 4.20 in 1M and 4.25 in 3M. On a 6-12M horizon, we expect the zloty to remain supported by both a moderately more positive outlook for growth and the ECB’s QE programme as well as the end of the central bank rate cuts”.
“Hence, we expect EUR/PLN to fall back towards 4.15 in 6-12M”.